Those who like to know their section numbers off pat have yet another hurdle to deal with this spring, with the new Corporation Tax Act presenting a substantial challenge to learn more new sections. The Act is the next product to roll off the tax law rewrite production line, and presents much basic corporation tax legislation in the new more accessible style.

The tax law rewrite's first product was released in 2001, and we have had a rewrite Act every other year since then, with the project relating to the main taxes largely in the home straight. Another two corporation tax bills have been released for comment, so more tax law rewrite legislation should be with us before too long, but in the meantime this Act covers the computational rules affecting most aspects of corporation tax. It runs to 21 Parts, and covers much of the same ground as ITTOIA 2005 did for income tax, including some special rules which apply only to companies, such as loan relationships.

The remaining work on rates of tax, losses and special regimes for specific businesses, and a third Bill covering international and miscellaneous provisions remains incomplete.

Meanwhile, Chas Roy-Chowdhury, ACCA’s head of taxation recently called for more resources to be allocated to tax law review, in a discussion paper called “Is there a way out of the tax labyrinth?” The paper recommends establishing two groups to help the Tax Law Rewrite Project’s (TLRP’s) extensive remit, which would work in parallel to and share information with the TLRP about tax policy in the UK.

The umbrella term for the new ground breaking tax organisation, which ACCA first proposed in the year 2000, would be the Tax Policy Committee (TPC). The first of the new bodies within the TPC would be tasked with simplifying existing tax legislation, with targets for reduction of legislation to remove burdens and unnecessary administration. The second body should then be responsible for pre-legislative scrutiny, offering a much more considered approach to tax law, putting an end to reactive and rushed through tax laws. Chas Roy-Chowdhury said: “The ultimate aim of establishing these two groups is to reduce tax errors and loopholes. Experts would be drawn from business, academia, MPs and members of the House of Lords, as well as HM Revenue & Customs and HM Treasury."